U.S. SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549

                                     Form 10-QSB

(Mark One)

[x]  Quarterly Report under Section 13 or 15(d) of the Securities
     Exchange Act of 1934

     For the quarterly period ended March 31, 2002
--------------------------------------------------------------------------

[ ]  Transition Report under Section 13 or 15(d)of the Exchange Act For the
     Transition Period from ________  to  ___________
--------------------------------------------------------------------------

                     Commission file number: 333-53516

                           MERCADO INDUSTRIES, INC.
                  --------------------------------------------
                 (Name of small business issuer in its charter)

      Nevada                                                76-0639842
-------------------------------                         ------------------
(State or other jurisdiction of                          (IRS Employer
incorporation  or  organization)                        Identification No.)

    14601 Bellaire Blvd. Suite 338, Houston, TX                   77083
------------------------------------------------------          ---------
    (Address of principal executive offices)                    (Zip Code)

                                 (281) 564-6418
                             ----------------------
                           (Issuer's telephone number)

-------------------------------------------------------------------------

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 during the past 12
months (or such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                          Yes [ ]     No [X]

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                    PROCEEDING DURING THE PRECEDING FIVE YEARS

Check whether the  Registrant  filed all  documents  and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange Act
after the distribution of securities under a plan confirmed by a court.

                                         Yes [ ]     No [ ]

                APPLICABLE ONLY TO CORPORATE ISSUERS

                                    1

<PAGE>

The Registrant has 20,000,000 Common Stock, authorized, 2,000,000 shares
of Common stock issued and outstanding, par value $0.001 per share as of
March 31, 2002.  Preferred Stock, $0.001 par value per share, 5,000,000
shares authorized, no Preferred Stock issued nor outstanding as of
March 31, 2002.

Traditional Small Business Disclosure Format (check one)

                                        Yes [  ] No [X]


                                       2

<PAGE>

PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements.................................   4
          Balance Sheet (unaudited)............................   5
          Statements of Operations (unaudited).................   6
          Statements of Cash Flows (unaudited).................   7
          Notes to Financial Statements........................   8

Item 2.  Management's Discussion and Analysis of Plan
           of Operation........................................   9


PART II. OTHER INFORMATION

Item 1.   Legal Proceedings....................................  13

Item 2.   Changes in Securities and Use of Proceeds............  13

Item 3.   Defaults upon Senior Securities......................  13

Item 4.   Submission of Matters to a Vote
           of Security Holders.................................  13

Item 5.   Other Information..................................... 13

Item 6.   Exhibits and Reports on Form 8-K...................... 14

Signatures...................................................... 14

                                       3

<PAGE>


PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS AND EXHIBITS

The unaudited financial statements of registrant for the three months ended
March 31, 2002, follow.  The financial statements reflect all adjustments
which are, in the opinion of management, necessary to a fair statement of
the results for the interim period presented.

                                      4


<PAGE>


                           MERCADO INDUSTRIES, INC.
                         (A Development Stage Company)
                                 BALANCE SHEET



<TABLE>
<CAPTION>

BALANCE SHEET

                                                  (unaudited)
                                                   March 31,        Dec 31,
                                                      2002           2001
                                                --------------  -------------
<S>                                             <C>             <C>
ASSETS
   Cash and cash equivalents                    $        1,523  $       2,386
                                                ==============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
   Accounts payable and accrued expenses                    85             85
   Advances by shareholder                               4,750          1,000
                                                --------------  -------------

     Total current liabilities                           4,835          1,085
                                                --------------  -------------


STOCKHOLDERS' EQUITY
  Preferred stock, $0.001 par value;
    5,000,000 shares authorized,
    -0- shares issued and outstanding                        -              -
  Common stock, $0.001 par value;
    20,000,000 shares authorized,
  2,000,000 shares issued and outstanding                2,000          2,000
  Additional paid-in capital                                 -          3,750
  Deficit accumulated during
   the development stage                                (5,312)        (4,449)

                                                --------------  -------------

     Total stockholders' equity                         (3,312)         1,301
                                                --------------  -------------

     Total liabilities and stockholders' equity $        1,523  $       2,386
                                                ==============  =============


</TABLE>

The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>
                            MERCADO INDUSTRIES, INC.
                         (A Development Stage Company)
                           STATEMENTS OF OPERATIONS
                                  (unaudited)



<TABLE>
<CAPTION>

STATEMENT OF OPERATIONS


                                    For three months ended     March 29, 2000
                                  -------------------------   (Inception) to
                                  March 31,      March 31,        March 31,
                                     2002           2001             2002
                                 ------------  --------------  --------------
<S>                              <C>           <C>             <C>
Revenue                          $          -  $            -  $           -

General and administrative
  expenses                               863             237           5,312
                                 ------------  --------------  --------------
Loss from operations before
  provision for income taxes            (863)           (237)         (5,312)

Provision for income taxes                 -               -               -
                                 ------------  --------------  --------------
Net loss                         $      (863)  $        (237)  $      (5,312)
                                 ============  ==============  ==============

Net loss per share -
  basic and diluted              $          -  $            -  $            -
                                 ============  ==============  ==============
Weighted average number of
  common shares                     2,000,000       2,000,000       2,000,000
                                 ============  ==============  ==============

</TABLE>

The accompanying notes are an integral part of these financial statements.


                                       6
<PAGE>
                            MERCADO INDUSTRIES, INC.
                         (A Development Stage Company)
                            STATEMENT OF CASH FLOWS
                                 (unaudited)


<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS

                                    For three months ended     March 29, 2000
                                  -------------------------   (Inception) to
                                  March 31,      March 31,        March 31,
                                     2002           2001             2002
                                 ------------  --------------  --------------
<S>                                  <C>           <C>           <C>

CASH FLOWS FROM OPERATING ACTIVITIES
 Net Loss                            $       (863)  $    (237)   $    (5,312)
 Stock issued for services                                                 -
 Increase in advances by shareholder                        -          1,000
 Increase in accounts payable and
  accrued expenses                                          -             85
                                     ------------  ------------  -----------

NET CASH USED IN OPERATING ACTIVITIES        (863)       (237)        (4,227)
                                     ------------  ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Sale of common stock                          -           -          2,000
  Cost associated with the sale of
    common stock                                            -              -
  Funds paid into capital by officer            -       1,000          3,750
                                     ------------  ------------  -----------

NET CASH PROVIDED BY FINANCING
ACTIVITIES                                      -       1,000          5,750
                                     ------------  ------------  -----------

  Increase in cash and cash
    equivalents                              (863)        763          1,523

  Cash and cash equivalents -
    beginning of period                     2,389         504              -
                                     ------------  ------------  -----------
  Cash and cash equivalents -
    end of period                    $      1,523  $    1,267    $     1,523
                                     ============  ============  ===========


Supplemental Information:
  Cash payments made for:
    Income taxes                     $          -  $          -  $         -
                                     ============  ============  ===========
    Interest                         $          -  $          -  $         -
                                     ============  ============  ===========

</TABLE>


The accompanying notes are an integral part of these financial statements.

                                       7
<PAGE>
                            MERCADO INDUSTRIES, INC.
                         (A Development Stage Company)
                         NOTES TO FINANCIAL STATEMENTS
                          DECEMBER 31, 2001 AND 2000



 NOTE 1 -  DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
           POLICIES

           Nature of Operations
           --------------------
           Mercado   Industries,   Inc.   (the  "Company")  is    currently   a
           development-stage company under  the  provisions  of  the  Financial
           Accounting    Standards   Board   ("FASB")  Statement  of  Financial
           Accounting  Standards ("SFAS") No.  7.  The Company was incorporated
           under the laws of the state of Nevada on March 29, 2000.

           Management's efforts to date have focused primarily on  the  raising
           of  equity  capital through the sale of its common stock and on  the
           development of  the medical device.  As such, the Company is subject
           to the risks and  uncertainties  associated with a new business. The
           success of the Company's future operations  is  dependent,  in part,
           upon  the  Company's ability to raise sufficient capital to complete
           development   and  testing  of  its  prototype  chiropractic  units,
           finalize the commercial device, establish commercial production, and
           then successfully market its product.

 NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

           Interim Financial Information
           -----------------------------

           The accompanying  unaudited  interim financial statements have been
           prepared  by  the Company, in accordance  with  generally  accepted
           accounting principles  pursuant to Regulation S-B of the Securities
           and  Exchanges  Commission.    Certain   information  and  footnote
           disclosures  normally  included  in  audited  financial  statements
           prepared   in   accordance   with  generally  accepted   accounting
           principles  have been condensed  or  omitted.   Accordingly,  these
           interim financial statements should be read in conjunction with the
           Company's financial  statements  and  related notes as contained in
           Form 10-KSB for the year ended December  31,  2001.  In the opinion
           of  management,  the  interim  financial  statements   reflect  all
           adjustments, including normal recurring adjustments, necessary  for
           fair presentation of the interim periods presented.  The results of
           operations  for  the  three  months  ended  March  31, 2002 are not
           necessarily indicative of results of operations to be  expected for
           the full year.

 NOTE 3 -  RELATED PARTY TRANSACTIONS

           The  Company neither owns nor leases any real or personal  property.
           The officers/directors  of  the  Company  provide  office  and other
           services without charge.  Such costs are immaterial to the financial
           statements and, accordingly, have not been reflected therein.  These
           individuals  are  involved in other business activities and may,  in
           the future, become involved in other business opportunities.


                                      8

<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATIONS

Mercado Industries, Inc. is a development stage entity, and has neither
engaged in any operations nor generated any revenues to date.

The Company plans to take advantage of the interest in online travel
Companies by creating an Internet site that is aimed at drawing consumers
who wish to make their own travel arrangements for the lower fares that go
along with self-booked reservations.  This site is linked to an already
operational website called www.mercadoindustries.com that is set up to
facilitate these arrangements.

Mercado plans to offer consumers a simple, usable and complete do-it-
yourself travel site on the Internet.  This proposed on-line travel site
would offer a convenient way to configure and book any air, lodging
and auto rental package to destinations in the U.S.

Mercado's major expense will lie in providing the revenues necessary to
purchase listings with major Internet search engines who will funnel clients
to the Mercado website when those clients request low-cost fares, room rates
and vehicle rentals for travel.  As in the world of print advertising, the
more you pay, the greater the reach; though on the Internet, it is not
column inches you buy with the extra dollars, but prioritized placement of
the Company's website's listing in response to customer requests for
discounted travel providers.

Going Concern - The Company experienced operating losses for the period
ended March 31, 2002.  The financial statements have been prepared
assuming the Company will continue to operate as a going concern which
contemplates the realization of assets and the settlement of
liabilities in the normal course of business.  No adjustment has been
made to the recorded amount of assets or the recorded amount or
classification of liabilities which  would be required if the Company
were unable to continue its operations.  Management believes it has
enough funds to operate for the next twelve (12) months without the
need to raise additional capital to meet its obligations in the normal
course of business.


                                       9

<PAGE>

Loss Per Share - The Company adopted the provisions of Statement
Of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per
Share" that established standards for the computation, presentation
and disclosure of earnings per share ("EPS"), replacing the presentation
of Primary EPS with a presentation of Basic EPS.  It also requires dual
presentation of Basic EPS and Diluted EPS on the face of the income
statement for entities with complex capital structures.  The Company did
not present Diluted EPS since it has a simple capital structure.

The Company has not pursued or explored any opportunities for an
acquisition or merger.  This does not preclude that the Company may not
explore any opportunities in the future.


Results of Operations
---------------------

As a development stage Company, the Company has yet to generate any revenues.
In addition, the Company does not expect to generate any revenues over the
next approximately to twelve (12) to eighteen (18) months.  During quarter
ended March 31, 2002, the Company had no revenues and $863 in general and
administrative expenses.  This compares to a net loss of $237 for the same
period last year.  Since the Company's inception on March 29, 2000 the
Company has lost $5,312.  The Company does not have any material commitments
for capital expenditures.


Plan of Operation
-----------------

Management does believe that the Company will be able to generate some
revenues during the coming year, management does not believe the
company will generate any revenues or profit until it becomes fully
operational.  As developmental and marketing costs will most likely exceed
any anticipated revenues.

As stated earlier in this filing, the Company believes it has enough
monies to sustain itself for the next twelve months, during this
developmental process.

                                     10
<PAGE>

Liquidity and Capital Resources
-------------------------------

The Company is authorized to issue 20,000,000 shares of its $0.001 par
value common stock and 5,000,000 shares of its $0.001 par value preferred
stock.

On March 14, 2000, the Company issued 2,000,000 shares of its $.001 par
value common stock for cash of $2,000.

On January 11, 2001, the Company filed with the U. S. Securities and
Exchange Commission for their review and approval a SB-2 Registration to
further capitalize the Company by offering for sale 3,000,000 shares of
common stock, at a purchase price of $0.025 per share.  The completion
of this offering would further capitalize the Company by $75,000, less
$6,000 in offering costs for a net to the Company of $69,000.  Without
this funding, the Company will be unable to move its business plan further.

To further capitalize the Company's sole shareholder contributed $4,750 to
the Company as additional paid-in capital.


Employee
--------

The Company currently has one employee who is the sole officer and
director of the Company.  This employee has received no compensation
through March 31, 2002.  The Company does not plan to hire any
additional employees until it can become an profitable entity.

The Company has no material commitments for capital expenditures nor
does it foresee the need for such expenditures over the next year.


Market For Company's Common Stock
---------------------------------

The common stock of the Company is currently not traded on the NASDAQ OTC
Bulletin Board or any other formal or national securities exchange.  There
is no trading market for the Company's Common Stock at present and there has
been no trading market to date.

There is currently no Common Stock which is subject to outstanding options
or warrants to purchase, or securities convertible into, the Company's
common stock.


Dividend Policy
---------------

The Company has not yet adopted any policy regarding payment of dividends.
No dividends have been paid since inception.



                                        11
<PAGE>

Forward-Looking Statements
--------------------------

This Form 10-QSB includes "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended.  All statements, other than
statements of historical facts, included or incorporated by reference in this
Form 10-QSB which address activities, events or developments which the
Company expects or anticipates will or may occur in the future, including
such things as future capital expenditures (including the amount and nature
thereof), finding suitable merger or acquisition candidates, expansion and
growth of the Company's business and operations, and other such matters are
forward-looking statements.  These statements are based on certain
assumptions and analyses made by the Company in light of its experience and
its perception of historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate in the
circumstances.  However, whether actual results or developments will conform
with the Company's expectations and predictions is subject to a number of
risks and uncertainties, general economic market and business conditions; the
business opportunities (or lack thereof) that may be presented to and pursued
by the Company; changes in laws or regulation; and other factors, most of
which are beyond the control of the Company.

This Form10-QSB contains statements that constitute "forward-looking
statements."  These forward-looking statements can be identified by the use of
predictive, future-tense or forward-looking terminology, such as "believes,"
"anticipates," "expects," "estimates," "plans," "may," "will," or similar
terms. These statements appear in a number of places in this Registration and
include statements regarding the intent, belief or current expectations of
the Company, its directors or its officers with respect to, among other
things: (i) trends affecting the Company's financial condition or results of
operations for its limited history; (ii) the Company's business and growth
strategies; (iii) the internet and internet commerce; and, (iv) the Company's
financing plans.  Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve significant
risks and uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements as a result of various
factors.  Factors that could adversely affect actual results and performance
include, among others, the Company's limited operating history, dependence
on continued growth in the use of the internet, the Company's inexperience
with the internet, potential fluctuations in quarterly operating results and
expenses, security risks of transmitting information over the internet,
government regulation, technological change and competition.

Consequently, all of the forward-looking statements made in this Form 10-QSB
are qualified by these cautionary  statements and there can be no assurance
that the actual results or  developments  anticipated by the Company will be
realized or, even if substantially realized, that they will have the expected
consequence to or effects on the Company or its business or operations.  The
Company assumes no obligations to update any such forward-looking statements.


                                    12
<PAGE>


                       PART II OTHER INFORMATION

ITEM 1.  Legal Proceedings

The Company is not a party to any legal proceedings.

ITEM 2.  Changes in Securities and Use of Proceeds

None.

ITEM 3.  Defaults upon Senior Securities

None.

ITEM 4.  Submission of Matters to a Vote of Security Holders

During the quarter ended March 31, 2002, no matters were submitted to
the Company's security holders.

ITEM 5.  Other Information

None.

ITEM 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

  3     Articles of Incorporation & By-Laws

               (a)Articles of Incorporation of the Company filed March
               29, 2000.  Incorporated by reference to the exhibits to
               the Company's General Form For Registration Of Securities
               Of Small Business Issuers on Form SB-2, previously filed
               with the Commission on January 11, 2001.

               (b)By-Laws of the Company adopted March 29, 2000.
               Incorporated by reference to the exhibits to the Company's
               General Form For Registration Of Securities Of Small
               Business Issuers on Form SB-2, previously filed with the
               Commission on January 11, 2001.

  13    Annual or Quarterly Reports

               (a) Form 10-KSB for the year ended December 31, 2000
               and December 31, 2001, incorporated by reference to the
               Company's Annual Report for Small Business Issuers on
               Form 10-KSB, previously filed with the Commission.

               (b) Form 10-QSB for the quarters ended March 31, 2001,
               June 30, 2001 and September 30, 2001, incorporated by
               reference to the Company's Quarterly Report for Small
               Business Issuers on Form 10-QSB, previously filed with
               the Commission.

                                       13

<PAGE>

(b)  Reports filed on Form 8-K

The Company filed a Current Report dated March 18, 2002, pursuant to Item 4
("Changes in Accountants") entitled "Changes in Registrant's Certifying
Account."



                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.


                                       MERCADO INDUSTRIES, INC.
                                       -----------------------
                                           (Registrant)

Date:  May 13, 2002                    By: /s/ Ruth Selmon
                                       -----------------------
                                               Ruth Selmon
                                               President/
                                               principal executive officer/
                                               principal accounting officer
                                               and sole director


                                        14
<PAGE>